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Think Progress- By Pat Garofalo  on Feb 2, 2012 at 10:30 am

Back in November, the Occupy Wall Street movement inspired “Bank Transfer Day,” a day for Americans fed up with the actions of the nation’s biggest banks to move their money to a different institution. Initial estimates of the impact of Bank Transfer Day placed the number of accounts moved at around 600,000, but later estimates revised that downward to around 200,000.

However, new estimates from Javelin Strategy and Research, a research and consulting firm, show that the original numbers were closer to the truth. Javelin found that 5.6 million people have moved their bank accounts in the last 90 days, with 610,000 citing Bank Transfer Day as their reason:

Bank Transfer Day and the Occupy Movement have received tremendous attention, and for the first time we have market research data to measure the impact on the financial services industry. Javelin’s research estimates that 5.6 million U.S. adults with a banking relationship changed providers in the past 90 days. Of those switchers, 610,000 US adults (or 11% of the 5.6 million) cited Bank Transfer Day as their reason and actually moved their accounts from a large to a small institution.

Javelin noted that this pace of account closing is three times the normal rate. While 11 percent of people moving their accounts cited Bank Transfer Day, one quarter said they moved their money because their old institution charged too many fees. Account closures at Bank of America, the nation’s second largest bank, actually jumped 20 percent in the fourth quarter of last year, potentially driven by the bank’s ill-fated decision to implement a $5 monthly fee for its debt cards.

According to the consulting firm cg42, the nation’s 10 biggest banks could lose as much as $185 billion in deposits this year due to customer defections. Of those banks, “Bank of America is the most vulnerable and could lose up to 10% of its customers and $42 billion in consumer deposits.” (HT: Business Insider)

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Bloomberg: Secret Fed Loans Gave Banks $13 Billion

By Bob Ivry, Bradley Keoun and Phil Kuntz – Nov 27, 2011 4:01 PM PT
Bloomberg Markets Magazine

Nov. 28 (Bloomberg) — The Federal Reserve and the big banks fought for more than two years to keep details of the largest bailout in U.S. history a secret. No one calculated until now that banks reaped an estimated $13 billion of income by taking advantage of the Fed’s below-market rates, Bloomberg Markets magazine reports in its January issue. Betty Liu reports on Bloomberg Television’s “In the Loop.” (Source: Bloomberg)
Enlarge image Kenneth D. Lewis Former CEO of Bank of America Corp.

On Nov. 26, 2008, then-Bank of America Corp. Chief Executive Officer Kenneth D. Lewis wrote to shareholders that he headed “one of the strongest and most stable major banks in the world.” He didn’t say that his firm owed the central bank $86 billion that day. Photo: Joshua Roberts/Bloomberg

The Federal Reserve and the big banks fought for more than two years to keep details of the largest bailout in U.S. history a secret. Now, the rest of the world can see what it was missing.

The Fed didn’t tell anyone which banks were in trouble so deep they required a combined $1.2 trillion on Dec. 5, 2008, their single neediest day. Bankers didn’t mention that they took tens of billions of dollars in emergency loans at the same time they were assuring investors their firms were healthy. And no one calculated until now that banks reaped an estimated $13 billion of income by taking advantage of the Fed’s below-market rates, Bloomberg Markets magazine reports in its January issue.

More:

VIDEO: Financial Services Subcommittee on Oversight and Investigations hearing of May 5, 2009.

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Arianna Huffington  | HuffPost | April 7, 2010 07:42 PM

The cliché tells us that you can’t judge a book by its cover. Agreed. But sometimes you can tell a lot about a book by the blurbs on its cover (and just inside the cover).

Such is the case with Simon Johnson and James Kwak’s 13 Bankers: The Wall Street Takeover and the Next Financial Meltdown, this month’s HuffPost Book Club pick. You know a book is onto something when, even in these politically polarized times, and dealing with a hot button issue like financial reform, it features side-by-side praise from both Jim Bunning and Alan Grayson. Yes, that Jim Bunning, who says that the book “makes it clear why ending ‘too big to fail’ and reforming the institutions that perpetuate it… are essential for our nation’s future economic prosperity and, more fundamentally, our democratic system.” Clearly, the need to reform our out-of-control financial system is not a right vs. left issue. (Full disclosure: I also did a blurb for the book).

The book is also incredibly timely, with the Senate gearing up for a floor debate on Sen. Dodd’s financial reform bill when it returns from Easter break. While offering an in-depth explanation of the factors that led to the financial crisis — a crisis Johnson and Kwak prove beyond any doubt is not over — 13 Bankers has the immediacy and of-the-moment feel of a blog post, the sense that this is happening now.

Original Article

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Lenders are using social graphs to determine how creditworthy you are. (Getty Images)

Banks now checking your Twitter and Facebook activity to see if you’re worthy of getting a loan

AMERICAblog- by John Aravosis (DC) on 1/22/2010 10:29:00 AM

Please write financially secure comments to this post:

Your social networking chit-chat could have an impact on your credit – specifically on whether banks think you are worthy of a loan.

Creditors are checking out what you post to your Facebook and Twitter accounts. They’re checking out who your friends are and who the people are in your networks.

The presumption is that if your friends are responsible credit cardholders and pay their bills on time, you could be a good credit customer…

How long until health insurance companies do the same?

The banks claim they’re just checking you out for “marketing” purposes, then they admit it’s actually about whether to give you loans or credit:

Pretty much everything you and your network reveal may be compiled, including status updates, “tweets,” joining online clubs, linking a Web site or posting a comment on a blog or news Web site….

Another reason credit issuers are looking to this data is to reduce lending risk. Social graphs allow credit issuers to know if you’re connected to a community of great credit customers. Creditors can see if people in your network have accounts with them, and are free to look at how they are handling those accounts.

The presumption is that if those in your network are responsible cardholders, there is a better chance you will be, too. So, if a bank is on the fence about whether to extend you credit, you may become eligible if those in your network are good credit customers.

“Credit card companies have been stung very hard during this downturn, and they’re going to work that much harder to avoid extending credit to people with a high level of predictable losses,” says Ken Clark, author of “The Complete Idiot’s Guide to Boosting Your Financial IQ.” “Social graphs can preemptively cut the amount of charge-offs by not giving high-risk people a card. It may translate into hundreds of millions of dollars industry wide.”

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Obama Weekly Address Slams Banks For Selfishness: ‘It’s A Sight To See’ (VIDEO)

First Posted: 01-16-10 08:05 AM   |   Updated: 01-16-10 09:42 AM

DARLENE SUPERVILLE, Associated Press

WASHINGTON – President Barack Obama on Saturday pitched his proposed tax on banks to recover the cost of bailing them out during the financial crisis, saying if they can afford billions more in bonuses, they can pay back the taxpayers, too.

The banks and Republican lawmakers oppose the tax, which Obama announced this week.

“We’re going to pass this fee into law,” the president said in his weekly radio and Internet address.

Congress must approve the tax and that was not assured, given the immediate opposition from Republicans. Democrats also appeared in jeopardy of losing their 60-vote majority in the Senate, with Democrat Martha Coakley in an unexpectedly close race against Republican Scott Brown in Massachusetts to fill the seat held for decades by the late Democrat Edward M. Kennedy.

Brown opposes Obama’s bank tax. Obama was heading to Massachusetts on Sunday to campaign for Coakley.

The White House’s decision to use the weekly address to speak about the proposed tax instead of the U.S. response to the suffering and devastation caused by the earthquake in Haiti suggested one line of attack Obama would use against Brown on Sunday.

VIDEO AND MORE HERE

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Bill Maher Explains Why You Should Move Your Money (VIDEO)

Huffington Post– First Posted: 01-12-10 10:06 PM   |   Updated: 01-12-10 10:16 PM

On the eve of the Financial Crisis Inquiry Commission’s first day of hearings, where the CEOs of four of America’s largest banks are scheduled to testify about the banks’ roles in the financial meltdown, Bill Maher explains why you should move your money out of a “too big to fail” bank and put it into a local community bank or credit union.

According to Maher: “This is not a conservative idea or a liberal idea. It’s not left or right. It’s populism at its best.”

WATCH:

Visit MoveYourMoney.info to find a community bank near you. Click here for answers to frequently asked questions about how to move your money.

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Cash from organized crime ‘rescued’ banks during crisis: UN official

By Raw Story
Saturday, December 12th, 2009 — 8:29 pm

The vast majority of an estimated $352 billion in proceeds of organized crime, mostly from the drug trade, was funneled through the global banking system during the financial crisis of the past two years, and in some cases, the money rescued banks from collapse, says the head of the UN Office on Drugs and Crime.

Antonio Maria Costa told the UK Observer that intelligence agencies and prosecutors alerted him 18 months ago to evidence that drug money was being “absorbed into the financial system.”

“In many instances, the money from drugs was the only liquid investment capital,” Costa said. “In the second half of 2008, liquidity was the banking system’s main problem and hence liquid capital became an important factor.”

MORE HERE

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By Paul Craig Roberts | Counterpunch, Aug 19, 2009

“In a little time [there will be] no middling sort. We shall have a few, and but a very few Lords, and all the rest beggars.” R.L. Bushman

“Rapidly you are dividing into two classes–extreme rich and extreme poor.” “Brutus”

Americans think that they have “freedom and democracy” and that politicians are held accountable by elections. The fact of the matter is that the US is ruled by powerful interest groups who control politicians with campaign contributions. Our real rulers are an oligarchy of financial and military/security interests and AIPAC, which influences US foreign policy for the benefit of Israel.

Have a look at economic policy. It is being run for the benefit of large financial concerns, such as Goldman Sachs.

Continued >>


Possibly related posts: (automatically generated)

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How can China’s stimulus plan be working so well, when ours is barely working at all? The answer may be simple: China has not let its banking system run roughshod over its productive economy. Chinese banks work for the people rather than the reverse.” Ellen Brown

MASH dude Demarco slays the China Banks

MASH dude Demarco slays the China Banks

Ellen Brown | Global Research | August 18, 2009

“The banks — hard to believe in a time when we’re facing a banking crisis that many of the banks created — are still the most powerful lobby on Capitol Hill. They frankly own the place.” — U.S. Senator Dick Durbin, Democratic Party Whip, April 30, 2009

webWhile the U.S. spends trillions of dollars to bail out its banking system, leaving its economy to languish, China is being called a “miracle economy” that has decoupled from the rest of the world. As the rest of the world sinks into the worst recession since the 1930s, China has maintained a phenomenal 8% annual growth rate. Those are the reports, but commentators are dubious. They ask how that growth is possible, when other countries relying heavily on exports have suffered major downturns and remain in the doldrums. Economist Richard Wolff skeptically observes:

We now have a situation in the world where we have a global capitalist crisis. Everywhere, consumption is down. Everywhere, people are buying fewer goods, including goods from China. How is it possible that in that society, so dependent on the world economy, they could now have an explosive growth? Their stock market is now 100 percent higher than at its low — nothing remotely like that hardly anywhere in the world, certainly not in the United States or Europe. How is that possible? In order to believe what the Chinese are saying, you would have to agree that in a matter of months, at most a year, no more, they have been able to transform their economy from an export-based powerhouse to a domestically focused industrial engine. Nowhere in the world has that ever taken less than decades.”

ORIGINAL ARTICLE

Bank of China to ‘cherry-pick’ UK mortgage customers as lending drought persists

Telegraph.co.uk | 20 Aug 2009

Bank of China, the country’s third biggest bank, plans to ‘cherry-pick’ UK mortgage customers as the lending drought in Britain remains.

In an interview with Bloomberg, Xixu Sun, the head of Bank of China’s retail operations in the UK, said “before the financial crisis you didn’t have a choice, you couldn’t cherry-pick the good customers.

Now you have that choice, because there’s a drought in terms of mortgage loans provided by banks.”

Bank of China is looking to become a major household name in Britain’s mortgage market, which has seen lending slump as the recession drives up bad loans at many banks. Although house prices have showed signs of stabilisng in recent weeks, the volume of mortgages approved is still less than half the 108,000 monthly average seen between the boom years of 2003 and 2007.

ORIGINAL ARTICLE

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Congressman says Washington elite are watching grassroots efforts very closely

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Steve Watson | Infowars.net | Tuesday, July 21, 2009

Texas Congressman Ron Paul has recorded a video update on the ongoing effort to audit the Federal Reserve, assuring supporters that the establishment in Washington is paying very close attention.

As Paul states in the video, 272 members of the House, 95 of them Democrats, now support HR 1207, Ron Paul’s “audit the Fed” bill.

In addition, 13 members of the Senate, 2 of which are Democrats, have pledged support for S 604 The Federal Reserve Sunshine act, the companion bill in the Senate.

“I think it is going to be impossible for them just to ignore everything we have done and just walk away, something will be done,” Paul comments. “The big question is will we be able to get something worth while?”

Original article

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